Professional Documents
Culture Documents
www.sagittarius.agency
hello@sagittarius.agency
Find us on:
Contents
Introduction Findings / Solution
- Relevance of online channels for
Background DIY customers
- The DIY market
- Opportunities for social media
- Market share
- The online and instore touch points
- Market issues - how small stores
for DIY
are challenging the big boxes
- How a multichannel approach can
- Summary of DIY product range
benefit business
Challenge Summary
- The DIY customer buying cycle
- Multichannel DIY lessons
- Case study – what we can learn
from Screwfix About Sagittarius
- The Talent
- Why a white paper?
Introduction
Our white paper aims to discover if it is possible to
source everything you might need for any DIY project We’ve conducted a review of offline
all in-store or all online? How DIY customers are
inspired and engaged to purchase products?
and online shopping channels and
We wanted to find out how the DIY industry is serving
its customers and if the industry is keeping up with the
some of the themes include:
challenges of online channels. And with the ever • How do you customers buy DIY products?
growing digital savvy consumers are the online • What factors influence shopping habits online
channels becoming more dominant? and offline?
• Who is serving DIY customers best?
• Where do buyers get more inspiration to choose
and buy DIY products?
• How is the DIY market becoming more
multichannel?
Background The DIY market
DIY was one of the worst hit sectors in 2012 in the UK. This was largely due to poor weather in
spring and summer, compounded by the sector’s overall underperformance.
However, research conducted by Verdict and SAS found DIY and gardening was retail’s best
performing sector in 2013. Indeed, ‘Think with Google’ noted in the US the number of DIY
shoppers was said to have increased due to the economic downturn. 38% of Americans
completed or considered a DIY project. And these are the digital savvy consumers, 51% of
which are first-time home buyers.
• B&Q (UK market leader) and Homebase • B&Q is a relatively mature business
are known as the ‘big boxes’ and expanded and, with so many big out-of-town
their range to include gardening in stores, it may have to downsize its
2011/2012, smaller providers are Screwfix physical footprint as the DIY market
and Toolstation. becomes more multichannel.
• Big box providers find it more difficult to • Homebase (95%, online 5 %), growing
adapt flexibly to the new online world rapidly, annual increase of 25%.
because they have higher fixed costs, but
B&Q is the most visited online Homeware
and DIY retailer.
Market Issues
How small stores are challenging the big boxes
In DIY, specialists are facing more competition, forcing them to diversify into new
categories, exposing them to new rivals, especially in kitchens and bathrooms.
B&Q’s profits increased more Independent DIY stores, mail Consumers are spending The biggest threat to the big box
than 10% to £238m for year order, non-specialist retail more online in DIY because of providers is Amazon who is
2011/12 with Kingfisher (Argos, Amazon, Tesco, the online vs price difference wading into the online space, big
claiming the success of its Wilkinson’s), online (increasing). +19% in 2012 for a cross-category retailer, growing
transformational plan power tool. fast in DIY small, nimble, low-cost
‘Delivering Value’ making the pure-play specialist.
business stronger.
Summary of DIY Product Range
DIY products tend to be bulky, low margin, slow-selling
with the need for advice to support the purchase. Before
broadband there was limited technology and limited
home delivery has made DIY a follower not a leader
However, there is an evolving product mix / brand mix in
2013/2014 (mostly for electrical, garden tools and
equipment, paints and garden decor products).
31.7% very good choice with lots
of ranges and product lines
8.1%
DIY shoppers, closely followed by convenience, price,
service and quality. The products suit my
own tastes
B&Q has a good opportunity to grow the group’s share and it has a live stock-check system.
of the ‘trade’ market, mainly via the fast-growing • Mobile - its app has proven popular and mobile traffic is
Screwfix chain in the UK.
growing significantly year on year, it was shortlisted for the
Screwfix is the UK's largest multi-channel supplier of best mCommerce site in 2013.
trade tools, plumbing, electrical, bathrooms and
• Social - 65,000 fans in two years, 40% Facebook growth in
kitchens. With over 30 years’ experience in the industry,
they despatch tens of thousands of parcels every week 2011; in 2014 they have 108,000 likes and Screwfix
for next day and weekend delivery to tradesmen, community forum; they have 21,500 followers on Twitter.
handymen and serious DIY enthusiasts all over the UK.
• Click and collect – allows shoppers to order and collect just
• Within the online purchase journey, it is a However, online penetration for home or DIY retailers remains low compared to
financial reward which exerts the biggest other sectors. Sometimes, the hazardous nature of many products makes
influence over the likelihood of someone home delivery too expensive. Only 2.25% of DIY sales were via online in 2011.
committing to buy. Globally, over two fifths DIY retailers are traditionally behind the curve when it comes to ecommerce.
(43%) say that this has a positive impact. Online sales account for 5% of total sales at Homebase and represent an even
smaller proportion of B&Q’s sales (2013).
Opportunities for Social Media
In the retail sector 4 in 10 social media users have
purchased an item online or in-store after sharing or
favoriting it on Twitter, Facebook or Pinterest (2013).
2/5
Social media has a strong potential to drive purchasing
patterns both instore and online.
consumers share
demographics and secondly which social media network
attracts those customer segments. In 2014 the DIY sector
remains weighted toward older, more affluent shoppers -
like or favourite
59.4% DIY shoppers are male, 40.6% female.
Opportunities for Social Media
From the Verdict data, 89.5% are aged 35-54 and 43% of How to maximise DIY presense on social networks
Twitter users are between 35-54 years old. Pinterest has a
strong female bias (83%) and 61% follow DIY and crafts.
There’s an opportunity to visually inspire the segment through
social media to buy a range of DIY products. However, be
mindful of the importance of customer segmentation as 61% of
UK social media users never visit Pinterest, so it has a niche
interest, but if you target those with a focused interest they are Content Culture
more likely to purchase. Speak to the Match the
hottest topics Your Brand community’s
In 2014, 63% of people turn to Pinterest for DIY and Crafts,
34% go to Twitter and 29% go to Facebook. People who get
Presense tone
excited by DIY projects have their own network culture; to
engage them appropriately it is critical to offer the right content
that presents the hottest DIY topics and trends. If you
understand the content, culture and product categories that
make up your customers’ experience on each social platform,
Category
you maximise your customers’ engagement and potential to
Sell in relevant
purchase. categories
Profile of DIY Shoppers 2014
27.8 %
This chart illustrates the percentage of all UK shoppers in each Male FeMale
42.2%
demographic group who regularly shop for DIY
49.1%
42.9% 48.1%
40.4%
32.5% 36.2%
35.3%
29.2%
22.8%
14.1%
However, research shows social media usage varies dramatically across different retail Source: Verdict How
product categories and different demographics. So by studying DIY customers’ usage Britain Shops 2014: DIY
patterns it's possible to set a DIY social strategy. There are opportunities to identify
certain overarching patterns to give a picture of which DIY customers can be found
where online.
The Online and Instore Aim to establish a fully interactive, cohesive customer experience to fully
m-commerce Stock Check Ecommerce How to videos Demo Vids Social sharing
“Retailers such as B&Q and Homebase are • Move more stock into back rooms.
• Introduce kiosks to showcase the entire range.
established authorities in DIY – and they need to
• Allow customers to find and order products more easily.
capitalise on this to deliver online advice, knowhow
• Equip managers with tablets using the same kiosk software so
and service that pureplays such as Amazon cannot.” they can spend more time on the shop floor helping customers.
John Mercer, European Retail Analyst, MINTEL • Update ageing PC hardware with lower cost thin
client computers.
Until recently, it was fairly easy to separate online activity from other • Roll out software that allows customers to customise their own
activities. There was a clear pattern to how people used the internet. kitchen order online, at home or with the help of staff in store.
Planning involves a more integrated business. A website should not be • The B&Q superstores are using online not just as a sales
separate to instore; many DIY providers have made that mistake. channel, but as a means to drive footfall into stores, especially
through reserve and collect facilities.
For the DIY sector specifically, show rooming comes in to play, but
mobile plays a big role in this too. Right sizing stores - adapting store
formats (B&Q has large, big and far too big), this could be inspired by
responsive website design
• The DIY online shop window must • Keep a clear focus on the DIY customer, • If DIY retailers improve the online
support what there is in-store and the know their preferred channels in the shopping experience it will provide the
right products are recommended, this buying process to get personal. customers with a sense of trust and
needs to support the phenomenon of credibility, this represents a huge
‘reverse showrooming’ for customers • Some retail brands report 30 to 40% of opportunity to reduce shopping cart
who browse online and shop offline. traffic to their website comes abandonment and retain
from mobile devices, but Sitecore loyal customers.
• Instore and online need to work in research found 46% of Business
harmony - consider what’s the benefit of to Business marketers rate their website • Adapt to changing trends and
a virtual product when they can experience on mobile devices as ‘poor’ demographics; older shoppers will
experience the real thing - online and or ‘very poor’. increasingly become an important
instore must be aligned. demographic to DIY retailers,
particularly online.
Summary - Continued
website design
Sagittarius
36 High Street, Ashford, Kent,
TN24 8TE, UK
01233 467800
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the
The facts of this report are believed to be correct at the time of publication but cannot be
guaranteed. Please note that the findings, conclusions and recommendations that Sagittarius
delivers will be based on information gathered in good faith from both primary and secondary
sources, whose accuracy we are not always in a position to guarantee. As such Sagittarius can
accept no liability whatever for actions taken based on any information that may subsequently
prove to be incorrect.